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Discover vs Avant: Personal Loan Fees, Rates & Flexibility Compared

Ante Mazalin avatar image
Last updated 09/23/2025 by
Ante Mazalin
Edited by
Andrew Latham
Andrew Latham
Summary:
Discover is ideal for borrowers with good-to-excellent credit who want a fee-free loan from a trusted bank. Avant is better suited for fair-credit borrowers who may not qualify with traditional lenders. Choose Discover if you value no fees and brand reliability. Choose Avant if you need more flexible credit requirements and don’t mind paying fees.
Both Discover and Avant offer unsecured personal loans, but they target different types of borrowers. Discover focuses on transparency and no fees, while Avant aims to serve borrowers with fair-to-average credit scores. Let’s break down the key features side by side.

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Quick Comparison: Discover vs. Avant Loans

FeatureDiscoverAvant
Loan Amounts$2,500 - $35,000$2,000 - $35,000
APR Range7.99% - 24.99%9.95% - 35.99%
Loan Terms36 months - 84 months24 months - 60 months
Minimum Credit Score660 - 850600 - 760
Origination Fees0%Up to 9.99%
Late Payment Fee$39$25
Prepayment FeeNoNo
Checking Account RequiredNoYes
Pre-Qualified Soft Credit InquiryYesYes
SuperMoney User Scorestrongly recommendedstrongly recommended

About Discover

Discover is a household banking brand that offers no-fee personal loans with fixed interest rates. It’s a great fit for borrowers who have solid credit and want predictable payments without worrying about extra charges.
Key Features:
  • No origination or prepayment fees
  • Trusted, well-established financial institution
  • Fixed-rate APRs and U.S.-based support
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and drawbacks to consider.
Pros
  • No origination or prepayment fees
  • Fixed-rate APRs for predictable monthly payments
  • Strong customer service reputation
  • Backed by a trusted national bank
Cons
  • Requires good-to-excellent credit
  • Loan amounts may be lower than some online competitors
  • No secured or joint loan options
  • Funding can take longer than fintech lenders

About Avant

Avant is an online lender that focuses on serving borrowers with fair-to-average credit scores. While it charges fees, it offers fast funding and greater accessibility than many traditional banks.
Key Features:
  • Loans available to borrowers with fair credit
  • Fast funding, often as soon as the next business day
  • Flexible loan terms and repayment options
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and drawbacks to consider.
Pros
  • Available to fair-credit borrowers
  • Quick funding process
  • More flexible eligibility than banks
  • Option to manage everything online
Cons
  • Charges origination fees
  • Higher APRs than prime lenders
  • No co-signer or joint loan options
  • Not ideal for excellent-credit borrowers seeking the lowest rates

Key Differences Between Discover and Avant

  • Credit Requirements: Discover requires good-to-excellent credit, while Avant is designed for fair-credit borrowers.
  • Fees: Discover charges 0% (none), while Avant charges Up to 9.99%.
  • APR Ranges: Discover APRs are 7.99% - 24.99%, compared to Avant’s 9.95% - 35.99%.
  • User Scores: strongly recommended vs strongly recommended according to SuperMoney reviews.

Eligibility & Application Process

Here’s how Discover and Avant compare on borrower requirements and application process:
RequirementDiscoverAvant
Minimum Age1818
Credit Score Range660 - 850600 - 760
Checking Account RequiredNoYes
Soft Credit Inquiry for PrequalificationYesYes
Discover is best for prime borrowers seeking no-fee loans, while Avant is more flexible, making it a good fit for applicants with fair-to-average credit who may not qualify with traditional banks.

Which Lender Is Best for You?

Choose Discover if you:
  • Have strong credit and want a fee-free loan
  • Prefer working with a major, established bank
  • Want predictable fixed-rate payments
Choose Avant if you:
  • Have fair-to-average credit
  • Need funding quickly
  • Don’t mind paying origination fees
Bottom Line: Discover is best for prime borrowers who want transparent, no-fee loans. Avant is best for those with less-than-perfect credit who still need access to personal loans.

What’s Next

Comparing Discover and Avant helps highlight their strengths, but it’s worth checking the full reviews to see exact APR ranges, fees, and recent user feedback. These insights can help you confirm which lender matches your needs.
Discover personal loans review
Avant personal loans review
Or explore more comparisons:
Discover vs LendingClub – Compare Discover’s no-fee model with LendingClub’s peer-driven loans.
Discover vs Best Egg – Which is better for debt consolidation and flexible repayment?
Discover vs LightStream – No-fee bank loans compared with low-rate lending.
Avant vs Upstart – Flexible fintech lending head-to-head.
Browse all personal loan lenders – Find and compare dozens of lenders to get the best rates and terms for your credit profile.

Key Takeaways

  • Discover is best for prime borrowers seeking no-fee, fixed-rate loans.
  • Avant caters to fair-credit borrowers and provides quick funding.
  • Discover offers stronger brand trust and service; Avant offers broader accessibility.
  • Both have simple online application processes and fixed APRs.

FAQs

Does Avant charge fees?

Yes, Avant charges origination and late payment fees.

Does Discover charge fees?

No, Discover does not charge origination or prepayment fees.

Which lender is easier to qualify for?

Avant is easier for fair-credit borrowers. Discover requires good-to-excellent credit.

Which lender offers faster funding?

Avant often funds the next business day, while Discover may take a bit longer.

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